Al Mohafaza signs SAR 1.55M lease for 10 school buses

Al Mohafaza Company for Education signed a lease financing agreement worth SAR 1.55 million with Aljabr Finance, a closed joint-stock single-shareholder company. The deal covers the purchase of 10 buses for the company's school transportation fleet.

The agreement runs for 60 months at a profit rate of 6.75% per annum. Al Mohafaza said the financing will be repaid in equal monthly installments over the term.

The company operates private schools in Saudi Arabia and has been expanding its fleet to meet growing enrollment. The new buses will replace older vehicles and add capacity on existing routes, according to the company's statement.

Aljabr Finance specializes in lease-to-own financing for commercial vehicles and equipment. The firm structures deals where the lessee takes ownership at the end of the term.

Al Mohafaza's shares trade on the Saudi stock exchange under ticker 4008. The stock was flat on the session, with no unusual volume.